Effectiveness of Advertising Strategies a Case Study of Soft Drink Industry in India (2)

The Indian Institute of Planning and Management New Delhi

CHAPTER-1

INTRODUCTION

Batch: PGP/SS 2010-2012 Alumni ID: DS/10/12-M-128

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INTRODUCTION TO THE TOPIC

Aerated waters are essentially non-alcoholic beverages artificially saturated at normal

temperature with carbon dioxide, the pressure varying according to the type of

beverage. Artificially aerated waters have its initiation from naturally aerated mineral

spring water. Large scale manufacturing of aerated water was started by Paul, at

Geneva in 1870 and that Schweppes in London. In USA Spokesman added fruit

juice, a flavor and the soft drinks industry started from 1907.

From the original concept of initiation of natural carbonated water from spring, the

industry has broadened to include the production of aerated sweetened drinks and

substitute for beverages, such as cider, which are aerated water since the

manufacturing process and the apparatus has undergone a considerable improvement.

Need for the study

Soft drinks industry is one of the most important industries in India. It has achieved

greater importance in recent years because of the patronage evinced by the general

public and the government interest to promote the industry. The number of units

manufacturing soft drinks is increasing over the years, which is mainly controlled by

two major MNC’s Pepsi Co. & Coca Cola.

The strategies adopted by a company to sell the products and reach the targeted sales

have great importance. It is the combination of various elements of marketing used to

attain the best possible results.


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The marketing objectives of seller are to combine the various sales effecting elements

effectively to reach the targeted sales at a cost that will permit it to make desired

profits.

The soft drinks industry in India is very competitive. Presently the market share of

Pepsi Co is 52% with a sales of Rs. 3,200 crore whereas the Coco Cola has a

share of 48% with sales of Rs. 2,500 crore. The degree of competition can be

understood when one finds the market share fluctuating every time with new schemes,

and new advertisements. Thus it can be said, marketing assumes great importance in

the light of fierce competition. The organization should review their marketing

programmes to maintain and to increase its market share. Therefore the study of

marketing activities of Pepsi Cola in area like NCR Delhi and its parts will contribute

to the soft drinks industry.


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CHAPTER-2

RESEARCH OBJECTIVE AND METHODOLOGY


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Objectives of My Study

Objectives of the dealer’s survey

To evaluate the market share of PepsiCo. And its competitor Coca cola.

To find out the product availability of PepsiCo.

To measure the advertising coverage of the companies.

Objectives of the consumer’s survey

To know the consumer preference regarding different types of flavoured

soft drinks in the region studied.

To find the most popular drink in the region and the reasons for the

preference.

To measure advertising effectiveness of PepsiCo. In comparison to Coca-

Cola.


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Research Methodology

Research Design

Data Requirements

Data is unassimilated facts about the market. Information ids the recorded experience

that is useful for decision-making. In the research program the information required

is both qualitative and quantitative.

The information required for the said research are about case strength, chilling

process, kinds of stores, consumer tastes and preferences and the frequency of

consumption, to name a few.

Data Sources

Secondary Data: This is the data that was collected for another purpose and

already exists somewhere. The sources of secondary data in

this case were company manuals and websites on the Internet.

Primary Data: This is the data gathered for a specific purpose or a specific

research project. As it is a descriptive research the primary data

was collected by questionnaires in two stages

First Part: Information from the dealers/retailers or outlets. Dealers were

asked questions from the structured questionnaire made to

gather information.

Second Part: Information from the consumers was collected through another

structured questionnaire.


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Research plan

The research plan can be further divided into following parts:

Define the Population

The first step is to define the population from which the sample is to be drawn i.e.

define the target population. The population in this study is all the dealers and all the

consumers (present and potential both).

Sampling Methodology

The sampling methodology adopted was convenience and judgment sampling.

Convenience sampling was chosen because of the limitation of time. Judgment

sampling was chosen because the distributors, retailers, customer executive and

salesman can say better about the sample to be chosen.

Sample FRAME

The sample frame was based on the boundaries that surround the population. The

boundary, here, is essentially the geographic boundary i.e. markets of the many

distributors under the research program, which consist of dealers of the routes and the

people living in and around NCR Delhi region.

Sample unit

The sample units are

Dealers for a dealer’s survey

Consumers for consumer’s survey


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Respondents

Respondents’ were-

Dealers from all the distributors.

Consumers of all age, sex and religion

Data collection instruments

Primary data was collected through questionnaires prepared under the guidance of

customer executive, distributors and project guide.

Sample Size

Sample size for consumers = 200

Sample size for dealers = 100

Market survey

Market survey is marketing research essentially done through fieldwork.

Preliminary work

Discussion with customer executive, territory trainer and manager (H.R.D.) and desk

research lead to formulation of topic (for the research program), which could help in

decision making of the consumer executive in the NCR Delhi region.

Questionnaire design

Questionnaire was designed with the help of the project guide and the customer

executive.


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Pilot Study

Pilot study was done in the nearby areas to different distributors.

Actual survey

By moving with the loaded vehicle, and my own bike the actual survey was done. As

the market was divided among many distributors, the 100 copies of dealer’s

Questionnaire and 200 copies of consumer’s questionnaire were divided among areas

as per the size of the market under the distributor and with the consent of customer

executive.


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CHAPTER-3

LITERATURE REVIEW


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Literature Review

The soft drink industry has witnessed a rapid growth over the pasty few years. This

has been largely due to increased globalization. The soft drink market is segmented

into carbonated drink, fruit base drink, concentrates and squashes carbonated drinks

dominated the market with brands like Pepsi, coke, Thumps-up, Mirinda, Fanta, etc.

becoming household names.

The market is characterized by high volumes, low margins on individual products and

to distributors owing to intense competition. A strong network is prerequisite for

generating large sales. -

THE SYSTEM

The Value chain


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RawMaterials

The Pepsi

cola co.

The Bottle

r

The Customer

The Consumer


Marketing Organisation Sturcture

The organization structure plays an important role in the function of an

enterprise.

Organization divides its task into small tasked which are assigned to various

sub units.

The state of mind high riding on confidence and determination has made Pepsi

the most professional body in the country.

Territory Team

TERRUUU


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TERRITORY

COCH

RA/DSMDISTRIBUOR

CUSTOMER

AccountDevelopmentCO Ordinator

TERRITORYDEVELOPMENTMANAGER


Pepsi-Company Profile

Corporate Mission:

We shall operate in existing and new business, which capitalizes on the Pepsi Cola

brand as our corporate image of reliability and integrity. Our objective is to delight

the customer both in India & abroad. We shall achieve this objective through

continuous improvement in quality and customer service. We shall strive for

excellence by nurturing, enveloping and empowering our employees and suppliers.

We shall encourage an open atmosphere conducive to learning and teamwork.

Corporate shared values:

Managing customer relationship

Commitment to improved customer satisfaction

Flexibility

Added value

Looking for opportunities

Passion for our customers

Customer service guidelines

Understanding

Commitment to quality

Honesty and integrity

Learning organization

Openness and transparency

Prospective care and concern for people

Team work

Trust


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History of PEPSICO.

Caleb Brad ham, invented Pepsi cola in 1898, in his pharmacy lab. The original Pepsi

bottling plant is located in New Bern, USA.

The original name of Pepsi-cola was “Brand’s Drink”. Created in the back of a

pharmacy. Caleb Brad ham turn the century by finding the Pepsi cola in Bern, who

was N.C. druggist. Today Brand Pepsi and other Pepsi cola North America product –

including Diet Pepsi, Pepsi-one, Mountain Dew, Slice and Mug brand account for

nearly one third of total soft drink sales in the united states, A consumer market

totaling about $56 billion. Pepsi-cola beverages are available in about 170 countries.

Pepsi-cola North America also makes and markets ready to drink iced tea and coffees,

respectively, via joint venture with Lipton. PepsiCo. Inc. is among the most successful

consumer product companies in the world, with 1998 revenues of over $22 billion and

1,51,000 employees. The company consists of: -

Pepsi-Cola Company, the world’s first largest beverage company.

Frito-Lay Company, the world largest manufacturing and distributor of

snacks chips

Tropicana Products, Inc., the world largest marketers and producer of

branded juices.

Pepsi-Co, Inc. was founded in 1965 through and the merge of Pepsi-cola

and Frito-lay. Tropicana was acquired in 1998. PepsiCo’s success is the

result of superior product, high standard of performance, distinctive

competitive strategies and the high integrity of our people.

However it took 5 years to trade mark of product. The present logo in

block letter is a result of modification in the original logo, which was in


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elaborate script form.

The logo was changed from an elaborate script to the modern block letter on the 1970

Pepsi label. Several different logos have been used. Until 1951, the word Pepsi and

cola were separated by 2 dashes. These bottles are called double dash. In 1951 the

modern logo with a single hyphen was introduced. All type of advertising

memorabilia are collected and reproduction are being made. These bottles are called

dash. The birthplace of Pepsi is located in historic New Bern, North Carolina.

The Brand owned by the Pepsi-co. is: -

Brand FlavorSize

Pepsi Cola 200,300,600,1500,2000

Mountain dew Lime 200,,600,

Mirinda Orange 200,300,600,1500,2000

Lime 200,300,600

7 up Clear lime 200,300,6001500

Slice Mangola 200,250,600

Aquafina Purified water 1000,5000

Lehar soda 300

Soda pet 600

PepsiCo. North America (PCNA) manufactures concentrates of “Pepsi-cola beverage”

such as PEPSI, PEPSI-COLA, DIET PEPSI, PEPSI ONE, MOUNTAIN DEW,

SLICE MUG, FRUITWORKS and SIERRA MIST for sale to franchised bottler’s in

the United States and Canada.

PepsiCo international (PCI) manufacture concentrates of PEPSI-COLA, DIET,

PEPSI, PEPSI ONE, PEPSI MIX, 7UP, MIRINDA, KAS, MOUNTAIN DEW, and


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other brand for sale to franchised bottles outside of the United States and Canada.

The Pepsi/Lipton tea partnership, a joint venture of PepsiCo and Unilever N.V. sells

tea concentrate to Pepsi-Cola bottlers, and develops and markets ready-to-drink tea

product under the Lipton trademark, including Lipton Brisk and Lipton’s ICED Tea.

PepsiCo’s partnership with the starbucks Corporation develops ready-to-drink coffee

products, which are sold under the starbucks Frappuccino trademark and are

distributed by Pepsi-cola bottlers. PCNA also licenses the processing and distribution

of Aquafina bottled water. In addition, PCNA manufactures and sells DOLE juice

drinks for sale and distribution by Pepsi-cola bottlers.

PepsiCo’s Tropicana Product, inc. (TPI) Produces, markets, sells and distributes its

Product under such sell-known trademark as Tropicana Pure Primium and Tropicana

Twister juice beverage products and Tropicana Pure Propics 100% juice products. It

also manufacture and sell Frui’vita Juice, Looza nectars and juice, Copella fruit juice

and Alvalle soups and fruit juice in Europe. Principal international market includes

Belgium, Canada, France, and the United Kingdom.


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PepsiCo’s Frito-Lay North America (FLNA) manufactures, markets, sells and

distributors a varied line of salty and sweet snacks food throughout the United states

and Canada, including Lay’s and Ruffles brand potato chips, Doritors and Tostitos

brand tortilla chips, Cheetos brand cheese-flavored snacks, Fritos brand corn chips,

Rold Gold brand pretzels, Wow! Brand low fat and no fat versions of potato and

tortilla chips, Sunchips brand multigrain snacks, a variety of branded dips and salsas,

Grandma’s brand cookies and Cracker Jack brand candy-coated popcorn. Flana also

sell and distributes OH BOY! OBERTO brand meat snacks under an agreement with

the Oberto sausage company.

PepsiCo’s Frito-Lay international (FLI) sell a variety of snack food product which

appeals to local taste including, for example, SABRITAS brand snack food in

Maxico, WALERS brand snack food in the United Kingdom, SMITA’S brand snacks

food in Australia, and GAMESA brand cookies and ALEGRO brand sweet snacks in

Mexico. In addition, many of U.S. brand, such as LAY’S, FUFFLES, DORITOS,

TOSTITOS, CHEETOS brand salty snacks foods have been introduced

internationally. Principal international markets include Mexico, The United Kingdom,

Brazil, Spain, The Netherlands, Australia and South Africa.


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PRODUCT PROFILE

PRODUCT

A product is a set of tangible physical attributes assembled in an identifiable form.

Each product carries a commonly industrial descriptive name. William J. Stanton

described the product, as a set of tangible and non-tangible attributes including

packaging, colour, price, manufacturer’s prestige, retailer’s prestige and manufacturer

and retailer services, which the buyer may accept as offering, wants satisfaction.

Coca cola has many products, which are categorized in to 2 groups namely

Carbonated soft drinks.

Packaged water.

Carbonated Soft Drinks:

Pepsi cola has carbonated soft drinks in 2 varieties, i.e. Colas and flavors. The core

brands of coca cola are

Pepsi

Mirinda

Mountain dew

7up

Slice


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Pepsi:

Pepsi is carbonated soft drink in strong cola flavour, seeing its popularity in India.

It’s available in 2 types of packaged sizes, single-serve and multi-serve. The

packaging is glass, plastic and cans, which may be returnable or non-returnable.

Miranda:

Miranda is carbonated soft drink in Orange and lemon flavour which is sold in more

then 150 countries. It is most recognizable brand in the world. It’s available in 2

types of packaged sizes, single-serve and multi-serve. The packaging is glass, plastic,

and cans which may be returnable or non returnable.

Mountain dew:

Mountain dew is carbonated soft drink in orange flavour which is sold in more then

100 countries. It’s available in 2 types of packaged sizes, single-serve and multi-

serve. The packaging is glass, plastic, and cans which may be returnable or non

returnable.

7up:

7up is carbonated soft drink. It’s available in 2 types of packaged sizes, single-serve

and multi-serve. The packaging is glass, plastic, and cans which may be returnable or

non returnable.

Slice:

Slice is mango flavored pulp juice best selling in India. It is recently taken over by

Pepsi cola to enhance the variety in its product line. Slice is available only in single


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served glass package returnable in nature.

Packaged Water:

Pepsi cola has introduced mineral water with the brand name Aquafina. This is

available in plastic package of different size.

Product grouping:

The products of Pepsi cola India are divided in to 7 stock keeping units. These are

volume based stocks and are as follows:

300ml 600ml 1.5 lit.

1 lit. 200ml 2 lit.

Can pack of 330ml

Product Characteristics.

Distribution is the most important as the product is fast moving and 100% perishable

(30-60). Due to non-availability, some other brand is sold and a unit sale is lost.

Package is returnable and is valuable to breakage. Unlike other consumer product

where the package need not be returned, the soft drinks bottle has to be relieved at the

point.

The demand for soft drinks shoot up during the summer season and the distribution

and production system would be very active. But during the winter season and rainy

season (off season) the demand would be very low as compared to the summer

season, hence a large number of personnel, vehicles, production capacity and all other

inputs are partially idle.


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Weight of the package i.e. bottle is twice as much as that of the product which it

holds. The demand for soft drink is impulsive, in the sense that people feel like

having soft drinks when they look at it. This is the reason for giving much

importance to display.

Demands highly intrusive availability with a very low dealer index.

Population in the town

Dealer index = ________________________

No. of dealers in the town

Lower dealer index indicates greater number of retailers in the town. Once the

retailers are more in numbers it is obvious that the product is available at more

number of outlets. Nowadays more emphasis is given to activation of new outlets,

which ultimately lead to a very low dealer index.

Occupies more shelves per rupee investment than any other consumer products. This

factor coupled with the retain ability of package requires high level of service

frequency.

Rate of distribution cost is more compared to the other consumable consumer

products. Due to the size of the bottle and the cases with which the products have to

be transported to the market makes the distribution cost high. In almost all other

branded consumer products the distribution cost is much lower than in comparison to

the soft drinks industry.


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All these points add to the fact that penetration distribution net work coupled with

efficient feeding are the only means to higher sales. Display and advertisement are

widely used to increase the demand for the product where as maintenance of

sufficient stocks and serving the drink chilled is for satisfying the increased demand.

Product Quality

The product here is non-durable. Hence it has to be consumed fast, purchased

frequently, made available in many locations and advertised heavily to induce brand

preference. Soft drinks are usually bought on impulse, therefore they should be

available at many places, because the consumer do not normally look for it and do not

stick to a particular brand. Product quality is one of the major product-positioning

tools. Quality stands for the rated ability of the brand to perform its functions. One

of the fundamental reasons for a good and healthy growth of market share of the

product in the potential market is the quality of the product. Every product will have

tangible attributes such as quality level, feature and styling. To increase the sales and

hence the market share, quality might be lowered or raised, features might be added or

withdrawn and the styling might be changed.

In the soft drink industry the tongue of the consumer is the final instrument in testing

the quality of the product. A sip of the product and the quality is known, image and

reputation of the product is either build or tarnished. Therefore, in consumer

consumable products great care and importance should be given to the quality of the

product.


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Problems

The product i.e. the soft drink has to be consumed at the point of purchase and

package is to be returned to the retailer, which is collected for refilling.

The second problem with the soft drink package is that it is easily breakable. During

bottling of the carbonated drinks nearly 30 crates get broken daily.

Thirdly each retailer has to deposit Rs. 5 per bottle which many retailers are reluctant.

As the bottle has to be returned for refilling, it increases the distribution cost and

hence the cost of the product. The bottles collected have to be washed against which

is done in a fully automatic machine.

Packaging

After the product quality, packaging of the product has its due share in attracting the

consumer and hence increases the market share. Proper packaging performs

The function of advertising, retailing, selling and reminding the brand of the product

to the customer. Most important aspect of packaging is it’s after use of or reusability

of the package. Companies are now paying more attention to the consumer’s growing

concern and interest in packaging. Packaging of paints in large buckets and ghee in

reusable cans etc. is the result of innovative packaging pursued by the companies.

The new pet pack of 500ml, 1.5 liters and 2 liter and 3 liter of soft drinks is a part of

this.

Packaging cost per unit in the soft drink industry is the highest of all the consumable

products. The product in the soft drink industry needs secondary packaging in the

form of plastic cases. The result is, increase in distribution cost and reduction of the


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retailer’s interest to keep large stock as it occupy considerable portion of the storage

area.

Pricing Policy

The price of a product or service is a major determinant of the market demand for the

item. Price affects the firm’s competitive position and its share of the market. As a

result, price has a considerable bearing on the company’s revenue and profit.

One of the psychological aspect of pricing is consumers rely on price as an indicator

of a product quality especially when they make purchase decision with incomplete

information. Studies have shown that consumers’ perceptions of product vary directly

with the price. Thus the higher the price, the better the quality is perceived to the

consumers make this judgment particularly when no other clues as to product quality

are available. Consumers’ quality perceptions

Can of course also be influenced by company’s reputation, advertising, and other

products to attract other products in exchange.


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PROMOTIONAL POLICIES OF THE COMPANY

Sales Force Management

Most companies use salesman and many companies assign them the pivotal role in the

marketing mix. The high cost of this resource calls for the effective sales

management process consisting of six steps, say, establishing sales force objectives,

designing sales force strategy, size, and compensation recruiting and selection,

training, supervising and evaluation.

As an element of the marketing mix, the sales force is very effective in achieving

certain marketing objective and carrying on certain activities such as prospecting

communication, selling and servicing, information gathering and allocating under the

marketing analysis and planning in addition to the traditional skills.

Once the sales force objective have been decided, strategic answer to the questions of

what type of selling would be most effective, what type of sales force structure would

work best (territorial, product or customer structured), how large the sales force

should be how they should be compensated in terms of pay level and pay components

such as salary, commission, bonus, expenses and other fringe benefits.

Sales force must be recruited and selected care fully to hold down the high cost of

hiring the wrong persons. Training program familiarize the sales people with the

companies history, it’s products and policies, the characteristics of the market,

Its competitors and the art of selling. Prospecting qualifying pre approach,

presentation and demonstration, handling objections and continuous encouragement

because they must make many decisions and handle many things, which are subject to

frustrations. Periodically the company must evaluate their performance to help them


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better their job.

The sales man

The job of sales man is to call upon the dealers regularly on fixed dates and time,

which is basically “servicing” the dealers. Therefore job of this sale person is

different from that of other consumer firms where the advantages and disadvantages

of the product have to be canvassed and sold. Here the demand is created through

various media and advertising both at national and local levels. The sales man job is

there for to service all the dealers regularly.

Basic activities

The soft drink sales man is highly service minded and he is successful and affective in

his work as sales man. His job can be summarized in the following lines:

1) Visits each dealer on a fixed routine i.e. on fixed date at affixed time punctually so

that the dealer can anticipate his visit and be ready with empty cases and cash.

2) Services each dealer on the route by ensuring that all our products are in sufficient

quantities are stocked and displayed, therefore he refills the entire empty one and

suggests more deposits to ensure that the dealer will never be out of stock of any

flavor till the next visit. He must perform a vide variety of management functions

including planning, coordination, evaluation, negotiation, super vision and

investigation. He must be skilled in gathering information, defining problems and

ultimately taking actions himself on time.


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Advertising

Advertising consists of all the activities involved in presenting –to a group of

customers, orally or visually, openly sponsored messages regarding a product service

or idea. This message is called advertising and is disseminated through one or more

media and is paid for by the identified sponsor.

Advertising is an inevitable factor in any company to promote its product through

effective media like television, radio, flash lights, hoardings, dealers sign boards,

stickers, newspapers, magazines slide screens at cinema halls etc.

Advertising is one of the major tools used by the company to reach the target buyers

and public. It consists of non-personal mode of communication conducted through

paid media under a specific sponsorship program. The main objectives of advertising

are as follows:

1) To inform the consumer about the new product, uses of the product and how it

works through the advertising media in the form of television, radio, and

newspaper etc. introducing a new product in the market would be difficult as well

as uneconomical without advertising.

2) The second objective of advertising is to built brand preference, change consumer

perceptions of product, attitudes, and lastly encourages and persuades the

consumer to switch over to the company’s brand.

3) The third objective is to remind the consumer about the product/brand and where

to buy it.

4) Advertising in the firm of point of purchase material, demonstrations, conducting

the exhibitions and spending on the special events helps the sales man to increase


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the sales and also gain the confidence of retailers and dealers by showing that

company is doing its share of product promotion.

5) Personal selling sales promotion is other form of promotion. Perfect coordination

among three types of activities can maximize the total impact of advertising on the

consumer and product desired results for the product.

Advertising by Pepsi-cola

Coco-cola spends substantial amount for advertisements in local news papers, slides,

screening in cinema theaters, hoardings, wall paintings, special, dealers sign boards

and for conducting special events.

The soft drink companies, in order to promote there respective products utilize special

events. Special events establish goods reputation with the organization in particular

and public in general. They promote public relations which provides strong base for

sales and help the smooth running of the organization.

Special events provide an opportunity for directly participating in the public activities

and then the product is identified with the events. When people talk of the event, they

remember the product. Thus it strongly registers in the mind of the people.


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Participating in the special events and making them a success requires a lot of

planning and execution. The materials required usually for this purpose are:

Wall posters

Cloth banners

The plywood cut – out logos

Card board scorers

Boards and badges

Market Segmentation as done by the Pepsi cola.

The consumers are “all people in all walks of life every where”. In fact a consumer

could during a day, be in any or many of the segment. In the morning he could be

part of the ‘at-work’ market. In the office in the daytime while shopping, a part of the

“on-premise” market. In the evening, at a marriage reception of the ‘special events’

market and in the night during dinner a part of the “Home Market.”

The markets of coca cola can be classified into

1) On –Premise Market

This market is the most basic for the company and is serviced by the route trucks by

the bottling plants or by the agents in the territories of the agencies.

This is the segment where the company should concentrate the most at the start

because on – premise market also means entering to the market and home market. It

is the duty of Sales Manager/Executive to see that the dealer displays the company


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bottles, store boxes and ice boxes and give chilled product. The products of good

displays and dominant point of the purchase make consumers ask for company’s

product.

2) Teenage Market

As the youth will “consume the company product, largest” and hence the company

should develop this segment, through schools, colleges etc. It should pay special

attention to sports, annual events or youth festivals and also arrange plant visits for

student.

3) At work market

Any office that gets visitors would like to entertain them with tea, coffee or soft drink.

The company should see that its products are available in the offices so that it can be

served to their visitors in most of the offices and factories they provide subscribe

refreshment to their employees and here again the company should develop this

market by marketing the products available

So that as an when an employee requires a refreshment he would ask for the company

products.

Once the consumer gets the habit of consuming a particular soft drink in his place, he

normally carries the habit to his home or out side when he is out for shopping or in the

market place.


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4) Home market

This segment is somewhat difficult to explain because it requires considerable

distribution effort. One can make a beginning by appointing agents in residential

colonies to sell the soft drinks to home. This scheme is helpful to company

particularly during monsoon, when the consumer is not able to go out to consume the

product on the premises market segment. Guests to the home are entertained by the

house wives with soft drinks which become an indirect sampling to benefit the

company and increase the usage of company’s product.

5) Special event market

One should always be on the look and scout around with out forgetting orders for

important functions, parties etc. where the company can get orders for products.

Through parties and function company is positioning its product to many sections of

consumer and also doing an indirect sampling, which has high image and publicity

value. A special salesman to book special events orders could be appointed and thus

maximum numbers of functions can be covered. Wedding orders are huge and great

care should be taken prompt supply, service and reliability are very important words

in this segment.


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CHAPTER-4

DATA ANALYSIS


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Dealer Survey Data Analysis

Q. 1) Which is the Place of consumption?

Objective: To know the kinds of places of consumption

Place of consumption No of shops Percentage

Restaurant / Hotels 38 38%

Canteens 22 22%

Movie Halls 11 11%

Retails Outlets 29 29%

Total 100 100%


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Analysis:

38% of outlets of soft drinks are restaurant, hotels, etc.

29% of outlets of soft drinks are retail outlets.

The restaurants, hotels, sweet shops and retail outlets i.e. grocery shops

provision stores, etc. constitute 67% and are major sellers.


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Q. 2) How many cases you maintain at a particular time for a particular

company? Objective: To know the potential of outlets.

Case Strength Respondents Percentage

1-15 54 54

16-30 18 18

31-45 6 6

46 and above 22 22

Total 100 100%


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Analysis:

54% of the outlets maintain the case strength of the range 1-15 cases.

22% of the outlets maintain the case strength of the range 46 and above.

Analysis shows that major outlets fall in the range of 1-15 cases.


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Q. 3) How do you chill Soft Drinks?

Objective: To know the chilling equipment used in various outlets.

Equipment Respondents Percentage

Ice Boxes 2 2

Coolers 52 52

Refrigerators 42 42

EBC 4 4

Total 100 100%

Analysis:

52% of the outlets have visi – coolers.

42% of the outlets have refrigerators.

Only 4% have EBC for chilling the soft drinks.


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Q. 4) Which media is most effective for the awareness of brand?

Objective: To know the preference of dealers regarding media.

Mode of Publicity Respondents Percentage

Painting 42 42

Glow sign 12 12

Dealer’s Board 38 38

Neon Light 4 4

Banners 2 2

Total 100 100


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Analysis:

Highest is painting with 42% as it serves two purposes:

The retailer need not paint his outlet and helps in beautification of the place.

Secondly, it helps the company in creation of goodwill with the retailers.


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Q. 5) What vehicle visiting frequency do you prefer?

Objective: To know the dealer’s preference of visits of vehicle.

Frequency Respondents Percentage

Daily 8 8

Alter. Day / Twice a Week 58 58

Weekly 34 34

Total 100 100


40


Analysis:

58% prefer alternate day / twice a week visit of vehicle

32% prefer weekly visit of vehicle.

More frequent visits help dealers in availing schemes, which are of short duration.


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CONSUMER SURVEY DATA ANALYSIS

Q- 1) Gender : Male / Female

Objective: To know the gender of consumer.

Gender Respondents Percentage

Female 84 42

Male 116 58

Total 200 100%


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Analysis:

58% of the consumers are male.

42% of the consumers are female.

Female consumers mostly prefer flavoured drinks other than cola.


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Q. 2) What is your age?

Objective: To know the age of consumers so that suitable advertising and punch

line can be made chilling equipment used in various outlets.

Age Respondents Percentage

Below 15 10 5

15 -25 102 51

25-40 52 26

40 and above 36 18

Total 200 100%


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Analysis:

51% of the consumers are between the ages of 15 to 25.

26% of the consumers are between the ages of 25 to 40.

Majority of the soft drinks consumer is in the age group of 15 to 40 years.


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Q. 3) What is your qualification?

Objective: To know the educational qualification of the consumers.

Education Respondents Percentage

10th and below 10th 56 28

10 + 2 26 13

Graduate 84 42

Post Graduate 34 17

Total 200 100%


46


Analysis:

28% of the consumers have educational qualification of 10th or below.

42% of the consumers are graduates or doing graduation.


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Q. 4) How often do you purchase soft drinks?

Objective: To know the frequency of consumption / drink age of soft drinks.

Duration Respondents Percentage

Regular 36 18

Twice a Week 80 40

Thrice a Week 50 25

Occasionally 34 17

Total 200 100%

Analysis:


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40% of the consumers drink soft drinks twice a week.

18% of the consumers drink soft drinks regularly.

It will take time for soft drinks to become a regular drink in the Indian market.


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Q. 5) Why do you consume a particular drink?

Objective: To know about the influencing factor other than advertising that makes

them buy soft drinks.

Factors Respondents Percentage

Taste / Flavour 140 70

Availability 24 12

Packing - -

Price - -

Any other 36 18

Total 200 100%


50


Analysis:

70% of the consumers drink soft drinks because of the taste.

18% of the consumers drink soft drinks for quenching thirst.


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Q. 6) Which flavour do you like in soft drinks?

Objective: To identify the favou rate flavour in the soft drinks market.

Flavour Respondents Percentage

Cola 128 64

Orange 36 18

Lemon 16 8

Mango 20 10

Total 200 100%


52


Analysis:

Market is been dominated by Cola drink which is 64% of the total.

Second is the orange flavour with 18% consumption.


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Q. 7) Which brand you like more in cola segment?

Objective: To know the brand preference in the cola segment.

Brand Respondents Percentage

Pepsi 96 48

Thumps up 72 36

Mirinda 32 16

Total 200 100%


54


Analysis:

Pepsi is the market leader with 48% share in the cola segment.

Total share of Pepsi Cola in cola segment is 64% which is tremendous.


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Q. 8) How do you come to know about soft drinks and it variety?

Objective: The consumer’s availability, to recognize and to locate brands.

Media Respondents Percentage

Sports Events sponsorship 18 9

POP 66 33

Advertising 104 52

Hoardings / Boards 8 4

Any other (Friends) 4 2

Total 200 100%


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Analysis:

50% of the consumers come to know about the soft drinks through advertising.

Hence the expenditure on advertising is worth.

Second rank is recognition at the point of purchase.


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Q.9) Which companies advertising do you like?

Objective: To know the relative effectiveness of advertising of Coca Cola vis-à-

vis Pepsi.

Views Respondents Percentage

Pepsi 108 54

Coco Cola 92 46

Total 200 100%


58


Analysis:

54% of the consumers like the advertisements of Coca Cola in comparison

to 46% of Pepsi which fluctuates whenever a new ad comes.

Mass appeal of SRK, Kareena Kapoor, Priyanka Chopra, Salman Khan,

Akshay Kumar really works in advertising.


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Findings of Dealer’s Survey and Consumer’s Survey

Pepsi has a good market in the NCR Delhi Region with 45% market share. This

share some time rises up to 50% when there are lucrative schemes like “FOOD

AND FIZZ”, SPACE CLUB 06.

The distribution network of Pepsi Cola is the most efficient network. The dealers

are happy with the visiting schedule of the vehicle of Pepsi Cola.

The coverage of advertising of Pepsi Cola is very good

The most popular flavor in the market is Pepsi, which accounts for 50% of the

market.

Before buying a soft drink, consumers are giving first preference to the taste and

the taste of Pepsi Cola products is refreshing and most popular.

Soft drinks consumption is more among younger generation.

The consumption patterns reveal that soft drinks consumption is more in canteens

and restaurants than in home segment.

The study emphasizes the importance of Sales Promotion in today’s scenario.

Sales Promotion bolsters or complement other elements of the promotional mix

during a specific time period.

Sales Promotion requires a lot of creativity. Sales Promotion needs to be

innovative in order to get customer’s attention. Marketers have to find what

consumers want and than accordingly plan a promotion.

Customers prefer those schemes wherein the benefit is realized at the time of

purchase or as early as possible. Maximum consumers are inclined towards price


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deals rather than gifts and this shows that Indian market is still very much price

sensitive.

In the survey conducted it is found that coupon is the most preferred tool of Sales

Promotion among the consumers of cold drinks. So it is recommended that

company’s in the cold drink industry come out with more creative and innovative

coupon schemes for the consumers which would definitely help in motivating and

influencing the consumer resulting in immediate sales.


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Chapter-5

CONCLUSION & RECOMMENDATIONS


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Conclusion

The primary focus of this study was to understand the consumer and the company’s

policies to serve the consumer. During the study other than questions asked, some

important fact also came to light, which are as follows:

Soft drinks market is seasonal as the sale shoots up in the months of summer

season.

The distribution function in the soft drink industry is the most important function

as unavailability means loosing.

Soft drinks are impulsive so merchandising functions also become points of

primary focus.

The fierce competition between PepsiCo and Coca Cola has made the retailers to

enjoy the situation.

The Market Share fluctuates every time with different schemes.

Commitment has become an important word in the market.

The situation of brand loyalty is not yet seen in the said market. But brand loyalty

is high in the case of kids and the people in the age group of 20 to 30 years.

Some materials like battery particles, bits of sachets, etc. have often being seen in

the bottle, which gives a bad name to the company.

Market presence of PepsiCo. With the combination of superior advertising makes

it a popular drink. Today PepsiCo bottle is found in every region / area.

In border areas, cases from other states enter into the markets, which are at

cheaper rates.

POP material is dispatched to a central place.

The painting coverage of Pepsi Cola is not uniformly i.e. some areas are very dry

where there is all over only Cola Cola’s paintings.


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During rainy season the secondary package of the pet bottles are damaged very

easily.

Consumers are shy of asking free products. The free schemes have not really

penetrated into the market.

Youth market is very much affected by the cricketers and Cinema Stars coming in

the advertising, as people follow them as role models.

Price charged by the retailers depends upon the local area and the type of outlet

where it is sold.

Some outlets are given card discount

Salesman regularly attends the small as well as big outlets.

In the different office channel, Pepsi cola and other soft drink are not of great

demand. Most of them are dry.


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Recommendations

Soft Drinks market is impulsive market. So the bottom line is “Jo Dikhta Hai Who

Bikta Hai” so priority should be given to display and product placement and the entire

salesman should follow it strictly as per the Plano gram and 8 steps of call.

Salesman should be properly educated about the product. There are a lot of

unemployed graduates in the market. Conveying the message that it is the first

step in their career development should attract them. They should be properly

trained according to the requirement.

Commitment is an important word in the market so care should be taken about

false commitments. The relationship and goodwill, all because of words spoken,

so it is better to keep quite than giving false commitment.

Schemes should be in the form of tangible gift items and it should reach directly

to the retailers and consumers.

The rate of product should be same in all the states.

The distribution of wall paintings should be uniform and in accordance to the

potential of the market.

POP material should be directly sent to individual distributors.

There should be some short local promotional programs in local events, near

cinema halls, school and college events, as it helps in building brand image.

Promoting the sell in different office channel galore in NCR Delhi Region.

Company should come up with better scheme to attract their Adm. as well as

employees.

Officer should monitor the service frequency strictly.

Sales promotion scheme should be reached to each and every outlet before it

started.


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Generally it was found that visi were in the corner of the outlets. so many do not

come to know product availability of Pepsi product. So it must be at prominent

place.


66


Limitations of the Study

The information required in the project was essentially gathered through questionnaire

method and company manuals etc. that had certain limitations. The following points

broadly give the limitations faced during the project:

Time Constraints

The research was completed in one and half months. NCR Delhi Region being a large

area, to cover the whole of NCR Delhi Region in the absence of good mode of

transportation within the allocated duration was difficult. The difficulty was also

because most of the time of the project was spent in penetrating the market itself.

Budgetary Constraints

The research was to be completed in the allocated budget, which is one of the

limitations in obtaining the required objective.

Low Response

The level of interaction with the respondent was not as high as expected due to their

ignorance.

Frame of Mind

Mindset of people towards the survey was also an obstacle in acquiring complete

information and positive interaction.

Natural Bias

Natural Bias of respondents if often a cause of limitations in many inquiries.


67


Authentic Information

There was no way to check the authenticity of the information given by the

respondents and thus had to be accepted as genuine.


68


BIBLIOGRAPHY

AUTHOR TITLE PUBLISHER EDITION

Company Manuals PepsiCo.

Kotler Philip Marketing

Management

Prentice Hall Tenth

William J.

Stanton

Fundamentals of

Marketing

Mc Graw Hill Tenth

Kothari C. R. Research

Methodology

Vikas

Publishing

Third

Revised

Sarwate Dilip Market Research Everest

Publication

Third

www.pepsico.com

www.pepsiworld.com

Pepsilineyahoo.co.in


69

http://www.pepsiworld.com/

http://www.pepsico.com/


APPENDIX

Questionnaire for Retailer

1. Name: __________________________________________________

2. Age: __________________________________________________

3. Sex: __________________________________________________

4. Education: __________________________________________________

5.Place of Shop: __________________________________________________

6. Different brands you sell and specify the time period

a) _____________________________________________________________

b) _____________________________________________________________

c) _____________________________________________________________

d) _____________________________________________________________

e)_____________________________________________________________

7. Case Strength you maintain at your shop

a) _____________________________________________________________

b) _____________________________________________________________

c) _____________________________________________________________

d) _____________________________________________________________

8. The Chilling process of the drinks in your shop

a. Ice Box c. Visual Cooler

b. Refrigerator d. E.B.C.

9. Which company’s brand has maximum sale in your shop?

a. Coca Cola c. Godrej

b. Pepsi d. Local


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10. Will you please state the reason for more sales of a brand?

a. Your preference c. Consumer’s choice

b. Advertisement d. Any other (Specify)

11. If you prefer, why so?

a. More Profits c. More Services

b. Good Service d. Any other (Specify)

12. The Frequency of service you prefer

a. Daily c. Alternate Days

b. Weekly d. Fortnightly

13. What type of sales promotion you prefer?

a. Painting c. Banner

b. Glow Sign Board d. Neon Lights

14. What is the % Market Share offered by each brand?

a) _____________________________________________________________

b) _____________________________________________________________

c) _____________________________________________________________

d) _____________________________________________________________

15. What is the profit margin of different products of soft drink?

a) _____________________________________________________________

b) _____________________________________________________________

c) _____________________________________________________________

d) _____________________________________________________________

16. What steps you take to improve awareness of a particular brand?

_______________________________________________________________

17. Which product of Pepsi Cola is sold more?

a. Pepsi c. Miranda

b. Mountain dew d. Slice

18. Which pack has more demand?

a. 200 ml c. 600 ml

b. 1000 ml d. 1500 ml


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e. 300ml

19. When and why does sale improve (scaling)

a. Sponsorship of events / sports

b. Season / Weather

c. Advertising

d. Schemes

20. Specify the age group and sex of consumers of these flavours

a. Pepsi ________________ e. Mountain dew______________

b. Miranda ________________ f. Slice _______________

c. 7 Up________________ d. Soda ________________

21. Suggestions, if any.

_______________________________________________________________

_______________________________________________________


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QUESTIONNAIRE FOR CONSUMER

1. Name: __________________________________________________

2. Age: __________________________________________________

3. Sex: __________________________________________________

4. Education: __________________________________________________

5.Occupation: __________________________________________________

6. Family Income: __________________________________________________

7. Which flavour you like the most

a. Cola c. Mango

b. Lemon d. Orange

e. Soda

8. Which company’s product you like?


b. Pepsi d. Local

9. Where do you consume a soft drink?

a. Restaurant c. Canteen

b. Cinema Hall d. Retail outlet

e. Home

10. How do you come to know about a particular brand?

a. Advertisement c. Hoardings

b. Point of Purchase d. Special Events

e. Any other (Specify)

____________________________

11. How often do you consume Soft drinks?

a. Regular c. Thrice a Week

b. Twice a Week d. Occasionally


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12. Which package you feel is the best for soft drinks?

a. Glass Bottle c. Pet Pack

b. Can Pack d. Tetra Pack

13. Which volume pack do you prefer purchasing

a.200 ml c. 600 ml

b. 1000 ml d. 1500 ml

e. 300 ml can

14. Why?

_______________________________________________________________

15. Which company’s product were you consuming earlier?


b. Pepsi d. Local

16. Why did you shift to other brand?

a. Taste c. Availability

b. Packing d. Any other (Specify)

e. Economy ______________________________

17. What in particular do you like in the drink you consume currently?

a. Taste c. Availability

b. Packing d. Any other (Specify)

e. Economy ______________________________

18. Do you feel there is any difference between products of Coca Cola and

Pepsi?

a. Yes b. No

19. If yes, can you state some differences?

_______________________________________________________________

_______________________________________________________________


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20. How are you instilled to consume a soft drink?

a. Influence of friend’s c. own choice

b. Events / occasion d. any other

_________________________________

21. What is your view on the advertising of Coca Cola when compared to

Pepsi?

_______________________________________________________________

24 What are your valuable suggestions to Pepsi Cola Co. with regard to?

a. Coke _________________________________________________

b. Taste _________________________________________________

c. Advertising _________________________________________________

d. Promotion _________________________________________________

e. Any Other _________________________________________________


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Effectiveness of Advertising Strategies a Case Study of Soft Drink Industry in India (2)

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